On July 10, Maruti Suzuki rallied 3.7% to hit a fresh 52-week high of Rs 13,300 from its previous close of Rs 12,827.70. In the last two days, the stock of India’s largest passenger vehicle manufacturer surged almost 10% and raised the investors’ health by more than 28.4% in the past six months. Meanwhile, Mahindra & Mahindra is one of the big losers on the index with a fall of 7.8% intraday.

Similarly, TVS Motors’ shares rose around 2% in the last two days and gave a return of over 20% in the past six months. 

But are these auto stocks value buys at current levels? Here are some of the top brokerages’ reports to help identify it: 

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Prabhudas Lilladher

The brokerage house has maintained a “Buy” call on Maruti Suzuki, Mahindra & Mahindra, and Eicher Motors, with an unchanged target price of Rs 14,432, 3,250, and 5,335, respectively. 

Meanwhile, the brokerage firm maintained the “Accumulate” rating on Tata Motors, with an unchanged price target of Rs 1,089. It maintained a “Hold” rating on Bajaj Auto and kept the target price maintained at Rs 9,984. However, Prabhudas Lilladher slashed the rating for Hero MotoCorp to “Accumulate” from “Buy” earlier, with an increased target price of Rs 5,914, against Rs 5,628.

The brokerage house has downgraded the rating on TVS Motor to “Hold” from “Buy” with a raised target price of Rs 2,300 from Rs 2,179. 

According to Prabhudas Lilladher, the onset of the festive season, mix improvement as well as recovery in rural demand and infrastructure development activities shall auger well for the growth of the overall industry. Albeit, a rise in input cost, an increase in discounts to complement sales, and adverse policy changes could hamper profitability and growth within the industry.

Emkay Global

The brokerage house prefers two-wheelers, consumer vehicles, and tyres over others. “We maintain our preference for 2Ws amid replacement-led growth visibility over the coming 2-3 years and the ongoing broadening of volume recovery,” Emkay said. It further thinks that the CV industry could enter an upcycle from FY26. That’s why, the brokerage remains cautious on PVs, given the deteriorating underlying industry health metrics and slowing retails. Emkay favours tyres among ancillaries due to improving demand, multiple margin triggers (premiumization, capex discipline, price increases), and structural tailwinds. Backed by the aforesaid arguments it picks Hero MotoCorp, JK Tyre, and Ashok Leyland

Elara Securities

The brokerage firm Elara Securities prefers auto OEMs: Bajaj Auto and TVS Motor. “We remain positive on Tata Motors (aided by positive triggers on JLR business), Maruti Suzuki and Mahindra Mahindra. We recommend “Sell” on Eicher Motors and “Reduce” on Ashok Leyland. Among ancillaries, our preferred picks are Samvardhana Motherson International, UNO Minda, Sona BLW and Gabriel India,” it said in a research report.